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Folsom Fashions sells a line of women's dresses. Folsom's performance report for November Year 1 follows. Actual Budget Dresses sold 5,000 6,000 Sales $235,000 $300,000

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Folsom Fashions sells a line of women's dresses. Folsom's performance report for November Year 1 follows. Actual Budget Dresses sold 5,000 6,000 Sales $235,000 $300,000 Variable costs 145,000 180,000 Contribution margin 90,000 120,000 Fixed costs 84,000 80,000 Operating income $6,000 $40,000 The company uses a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income. The variable cost flexible budget variance for November is: O $5,000 favorable. O $5,000 unfavorable. O $4,000 favorable. O $4,000 unfavorable

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